CSRC Official Clarifies
Stance on Asset Sales

SHANGHAI, China -- A senior official at China's securities regulator said Hong Kong's so-called red-chip companies can continue to grow by receiving asset injections from their mainland Chinese parents.

Red-chip companies are Hong Kong-based firms controlled by mainland entities. Red chips soared earlier this year on hopes that their parents would sell them choice mainland assets at attractive prices. But these stocks have plunged in...